The municipal market was slightly weaker yesterday.
"We're a bit weaker, just following the Treasury market," a trader in New York said. "It's off maybe two or three basis points right now, and maybe a little weaker than that as you go out longer."
Trades reported by the Municipal Securities Rulemaking Board yesterday showed some losses. Bonds from an interdealer trade of insured Pennsylvania Turnpike Commission 5s of 2038 yielded 4.70%, one basis point higher than where they were sold Wednesday. A dealer sold to a customer insured New Jersey Educational Facilities Authority 5s of 2035 at 4.72%, up two basis points from where they were sold Wednesday. Bonds from an interdealer trade of Arizona Health Facilities Authority 5s of 2035 yielded 5.18%, one basis point higher than where they were sold Wednesday.
"There's been a weaker tone hanging over the market all week, and there's no exception here," a trader in Los Angeles said. "I'd say we're off a solid two basis points overall, and as much as four basis points cheaper in price on the long-end."
The Treasury market showed losses. The yield on the benchmark 10-year Treasury note, which opened at 3.73%, finished at 3.83%. The yield on the two-year note was quoted near the end of the session at 2.40% after opening at 2.22%.
In economic data released yesterday, initial jobless claims for the week ended April 19 came in at 342,000 after a revised 375,000 the week before. Economists polled by IFR Markets had predicted 375,000 claims. Continuing jobless claims for the week ended April 12 came in at 2.934 million after a revised 2.999 million the previous week. Economists polled by IFR had predicted 3.000 million continuing claims.
Durable goods orders fell 0.3% in March after a revised 0.9% drop the previous month. Also, durable goods excluding transportation rose 1.5% in March after a revised 2.1% drop the prior month. Economists polled by IFR had predicted a 0.6% rise in durable goods and a 0.6% increase in durable goods excluding transportation.
Sales of new single-family homes dropped 8.5% to a 526,000 seasonally adjusted annual rate in March. The March figure came after a downwardly revised 575,000 rate in February, a 5.3% drop. IFR Markets' poll of economists had predicted a 580,000 sales level for February.
The final April University of Michigan consumer sentiment index is slated for release today. Economists polled by IFR expect a 63.2 reading.
In the new-issue market yesterday, Lehman Brothers priced $462.1 million of unlimited-tax general obligation bonds for the Chicago Board of Education. The bonds mature from 2017 through 2029, with a term bond in 2032. Yields range from 3.90% with a 5% coupon in 2017 to 4.75% with a 5% coupon in 2032. Bonds maturing in 2027 and 2032 are insured by Financial Security Assurance Inc. The remaining bonds are uninsured. The underlying credit is rated A1 by Moody's Investors Service, AA-minus by Standard & Poor's, and A-plus by Fitch Ratings. The bonds are callable at par in 2018.
Banc of America Securities LLC priced $356.9 million of bonds for Lorain County, Ohio, in multiple series. Bonds from a $91 million series of revenue refunding bonds mature from 2010 through 2018, with term bonds in 2024 and 2033. Yields range from 3.05% with a 4% coupon in 2010 to 5.08% with a 5% coupon in 2033. Bonds from a $90.9 million series of revenue refunding bonds also mature from 2010 through 2018, with term bonds in 2024 and 2033. Yields range from 3.05% with a 4% coupon in 2010 to 5.08% with a 5% coupon in 2033.
Bonds from two separate $50 million series of revenue bonds mature from 2009 through 2018, with term bonds in 2024 and 2029. Yields range from 2.55% with a 4% coupon in 2009 to 5.03% with a 4.75% coupon in 2029. And bonds from a $75 million series of revenue bonds mature from 2009 through 2018, with term bonds in 2024 and 2029. Yields range from 2.65% with a 4% coupon in 2009 to 5.10% with a 5% coupon in 2029. Bonds from the $75 million series are insured by Assured Guaranty Corp. All other bonds are insured by FSA. The underlying credit is rated A1 by Moody's and AA-minus by both Standard & Poor's and Fitch. All bonds are callable at par in 2018.
Morgan Stanley priced about $340 million of bonds for the California Statewide Communities Development Authority, to benefit Sutter Health, in three series. Bonds from a $253.6 million series mature in 2048, yielding 5.40% with a 5.25% coupon. Bonds from a $45.2 million series mature in 2038, yielding 5.05%, priced at par. And bonds from a $42.1 million series mature from 2008 through 2014, with a term bond in 2038. Yields range from 1.90% with a 4% coupon in 2009 to 5.05% priced at par in 2038. All bonds are callable at par in 2018. Bonds from the $45.2 million and $42.1 million series are insured by FSA. Bonds from the $253.6 million series are uninsured. The underlying credit is rated Aa3 by Moody's and AA-minus by Standard & Poor's.
JPMorgan priced $226.6 million of power supply system revenue bonds for Wisconsin Public Power Inc. The bonds mature from 2009 through 2029, with term bonds in 2037. Yields range from 2.35% with a 4% coupon in 2009 to 4.72% with a 5.25% coupon in 2037. Bonds maturing from 2013 through 2037 are insured by FSA. The remaining bonds are uninsured. The underlying credit is rated A1 by Moody's and A-plus by both Standard & Poor's and Fitch. The bonds are callable at par in 2018.
